Trump to bar funding of entities that do diversity work abroad - report

Trump to bar funding of entities that do diversity work abroad - report

In a significant development, Pfizer has agreed to lower prescription drug prices for the Medicaid program to levels comparable to those charged in other developed countries. This move comes as a result of a deal struck with U.S. President Donald Trump, who has been pressing drugmakers to reduce prices in the United States, which currently pays substantially more than other developed nations.

Under the agreement, Pfizer will offer "most-favoured-nation" pricing on all new drugs launched in the U.S., a policy that Trump has been advocating for. This deal includes a three-year grace period during which Pfizer's products will not be subject to the targeted pharmaceutical tariffs, provided they are manufactured in the U.S. Pfizer has pledged to invest $70 billion in research and development and domestic manufacturing.

The agreement was announced on Tuesday, and shares of Pfizer and other major drugmakers, including Eli Lilly, Merck, Amgen, AbbVie, and GSK, rose on the news, reflecting investor relief that they would escape the worst of the tariffs. The deal was seen as a favorable outcome for the industry, as Medicaid already benefits from substantial discounts and rebates, reducing the incremental impact on manufacturers.

The new Medicaid prices are set to launch in 2026, with the most-favoured-nation pricing based on the lowest price paid in eight other wealthy countries after fees and rebates. This agreement is part of the White House's new direct-to-consumer website, TrumpRx, which is scheduled to launch in 2026.

The agreement comes amidst Trump's broader efforts to reduce drug prices in the U.S., including a threat to impose a 100% tariff on imports of branded or patented pharmaceutical products from October 1 unless a drugmaker builds a manufacturing plant in the U.S. Several drugmakers, including AstraZeneca and Eli Lilly, have already made similar pledges to boost their U.S. manufacturing capacity in response to these threats.

The deal has been met with cautious optimism by health economists, who note that while it could provide significant savings for states struggling with the cost of specialty drugs, the effect would be less dramatic than if the reductions applied to Medicare, which spends more on drugs than Medicaid.